Gold rose in Asia as the prospects of credit tightening in China triggered a drop in equities, prompting some investors to seek a haven in precious metals.
Yuan forwards weakened the most in more than four weeks after Premier Wen Jiabao said the currency is not undervalued and criticized international calls for appreciation. Government bonds slid.
US fund house T Rowe Price is in advanced talks to buy a stake in China's biggest asset manager from Citic Securities Co, two sources with direct knowledge of the deal said on Monday.
Hong Kong stocks lost 130.64 points, or 0.62 percent to close at 21,079.10 on Monday.
The ChiNext stock market was up Monday as 41 of the 58 stocks at China's start-up board for small and medium-sized enterprises rose.
Chinese equities retreated on Monday, driving the benchmark Shanghai stock index down below the psychologically-important 3,000-point level, on concerns over government moves to cool economic growth and squash inflation.
China's benchmark stock index may fall a further 17 percent to 2,500 in the first half as the government steps up measures to cool growth, according to Guotai Junan Securities Co, the nation's second-largest brokerage.
Stock market indexes
The world is watching China's next move after it witnessed last year key progress in the initiative to make renminbi, or yuan, a global currency.
Mainland stocks dropped the most in a week, capping a second weekly retreat, on concern the government will intensify measures to slow economic growth and avert asset bubbles.
Hong Kong stocks closed down 18. 46 points, or 0.09 percent, at 21,209.74 Friday.
The ChiNext stock market was up Friday as 31 of the 58 stocks at China's start-up board for small and medium-sized enterprises rose.